Generics: Superiorly or Spuriously?

Multibrand retail by the world’s largest chain set foot in India with thunderous applause by the industry, and the government as the much-needed step to bring in further economic reforms, and FDI in crucial sectors. It could well have been majority holding by the country, but it was still worth it to learn new lessons in targeted farm produce, storage and coming to terms with the nuts and bolts acquiring, assimilating and setting massive supply chains. For the first thirty years after independence the country struggled with famine, starvation, and during the second half, conditions remained more or less the same, because there was no infrastructure or a genuine will to handle bumper crops that were allowed to rot lest the market prices fell. To sell cheap is as bad for the economy as is inflation. The farmer was confused. A good harvest actually lowered his rates, a bad one hardly got him anything. He was not allowed so easy an access to markets for the best deals, and to learn from international markets how to rotate his crops for the best national interests as well as rewarding remunerations overseas. If economics is not all about production, supply and pricing, then what else is it? This country clearly failed in any policy by any government to handle agriculture production, storage, distribution so as to trade in it profitability. Agriculture and agriculture based products are 60-70% of our GDP. The bargain sounds good in the sense that we shall get some cues as to how we should have done it on our own. Economics, as it has been joyously defined by some, is a subject whose sole purpose is to give employment to the economists.

The question today is how to do some more good to the Indian pharma, that entirely on its own, under tremendous government red tape, rose to give standard quality drugs at perhaps the cheapest rates worldwide, even to become the globe’s largest producer of generic drugs.

Circumstances helped. There were no patent laws on pharma molecules for quite some while, but the spirit and entrepreneurship of this industry pounced on the opportunity of producing many so-called branded generics, initially winning the market by their low pricing for the country’s needs, and now ready to take off to some of the largest markets in the world. Let me add, that those parts of the world do need it, inasmuchas they needed outsourcing to this country in software.The question quite clearly is, that whereas “branding” in retail and consumer goods is laudable , (if we are following the capitalist theme), why should “branding” be done away with in drugs and pharmaceutical sector. “Branding” is in fact core to competition, that gives the right stimulus to the manufacturer who is ready to sweat it out in the so-called global village market. In a developing country like India, brand identity is perhaps the best way to assure adequate competition both in terms of quality and pricing. No manufacturer, innovator or retailer can survive without the driving force of his product identity. That’s why you have “Wal-Mart” here than lesser known retailers.

To force the Indian pharma to shed its instincts to compete by pushing them in the same bland basket of “generics” is the best way to kill it instantly. The contrast stands out more when multibrand retail is being hailed as an economic stimulus. It is difficult to explain such contrasting policies at the same time, in what are two essential groups of commodities. Does the simultaneous opening up of the insurance sector from 26% to 49% have a bearing? – to lessen the burden of foreign entrants with the government in some sort of agreement that its own people be treated more cheaply, when the Indian pharma is the largest and cheapest in the world, and still providing good quality. This also comes at a time, when quite a few multibillion churner brands will be falling in the so-called “patent pit”, when they can now be legitimately manufactured by companies other than the one with the original patent. Indian companies would be quite geared up for this, finally with benefits to local and international markets with their competitive pricing and quality.

Today, there are many Indian branded generics that have FDA approval. Though original patenting and clinical trials may take time, companies have captured the market though change in formulations as “extended release”, “mouth dissolving” anxiolytics and analgesics. A particular company seems to have almost cornered a world No.1 intramuscular analgesic by replacing the adjuvants, thereby making the injection almost painless. It sells.

Political rhetoric aside, there are many ways to make a drug or medical therapy affordable. To tamper with the dynamics of certain industry that may give the economy a take-off, is just not done. Add to that the well-known statistics that roughly 25% of medicines in the market are spurious. If quality checks can’t be done now, will it be easier when all is to be sold as “generic”, and further approval for 3-1/2 year courses for village doctors? Well, if the final goal is to reduce total carbon emissions of this country, perhaps this policy seems to have some meaning!

DISCLAIMER : Views expressed above are the author's own.

Author

Anoop Kohli is a senior consultant neurologist at the Indraprastha Apollo Hospital, New Delhi. His interests go far beyond his chosen profession. For him, it's just one game of life so interesting to study for all its themes and aberrations. He also dabbles in script-writing and recently got a membership of the Bombay Film Writers' Association. In this blog, Masquerader, expect from him anything from H1N1 to Heena.

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Author

Anoop Kohli is a senior consultant neurologist at the Indraprastha Apollo Hospital, New Delhi. His interests go far beyond his chosen profession. For him, it's just one game of life so interesting to study for all its themes and aberrations. He also dabbles in script-writing and recently got a membership of the Bombay Film Writers' Association. In this blog, Masquerader, expect from him anything from H1N1 to Heena.